Hedge fund managers and lawyers are using the IMF in a 5 billion + bet against the government of Pakistan.
So what is it all about?
In 1993 BHP entered into a project with the Pakistan government about a new mining operation. They were very skeptical about the project and went out of it in 2000. They created the Tethyan Copper Company.
The firm was sold to Barrick Gold in 2013. The Pakistan Supreme Court ruled that the joint venture was violating several Pakistan laws. So they declared the deal illegal.
To name one of the problems was the lack of transparency.
You would expect that the case would be over after the Supreme court ruling. This is, not the case.
So what is at stake?
Well, we begin with the land size. 1,0000 square acres. Next to a tax holiday of 15 years. The land needed would be simply taken by the current owners. At least this is what the US arbitrary decided.
Tiny problem. There is no project approval, nor a contract to do the project. There was an agreement to hold talks. That was it.
One of the biggest problems with this is that Pakistan is already on emergency funding from the IMF.
It shows how the western countries are fighting for economic dominance.